Women have been among the most disadvantaged and oppressed section of our country with regard to access to and control over resources. Problems faced by them continue to be grave particularly for illiterate & semi literate women of rural and urban areas In order to alleviate their problems, Govt. of India launched a scheme entitled " Trade Related Entrepreneurship Assistance and Development" (TREAD) during the 9th plan period.
The scheme envisages economic empowerment of such women through trade related training, information and counseling extension activities related to trades, products, services etc.
The scheme was slightly modified and was in operation until September 2017.
Experience has revealed that apart from counseling and training, delivery of credit poses the most serious problem for the poor women. There is also dearth of information with regard to existing status of women and their common needs for providing necessary support. Since such women are not able to have an easy access to credit, it has been envisaged that the credit will be made available to women applicants through NGOs who would be capable of handling funds in an appropriate manner. These NGOs will not only handle the disbursement of such loans needed by women but would also provide them adequate counseling, training and Assistance in developing markets.
- Under the scheme, there is a provision for Government of India grant up to 30% of the loan/ credit maximum up to Rs. 30.00 lakh as appraised by lending institutions/ banks. The appraising lending institutions would finance the remaining 70% as loan Assistance to applicant women, who have no easy access to credit from banks due to their cumbersome procedures and the inability of poor and usually illiterate/semi-literate women to provide adequate security demanded by banks in the form of collaterals.
- GOI Grant and the loan portion from the lending agencies to assist such women shall be routed through eligible NGOs engaged in assisting poor women through any kind of income generating activities in non farm sector. For example if an NGO submits project(s) for a number of individual or group(s) women say for Rs. 50,000 each for a group of 50 women, then the loan amount required by 50 women would be Rs. 25 lakhs. To it would be added the expenditure that the NGO will make in training / counseling of staff, part expenses on operationalising a management and monitoring system, vehicles, charges for legal documentation, training of loaners, auditors fees charged. Say duly approved by lending institutes, it works out to be Rs. 15 lakhs. Then the total project cost would be Rs. 25 + 15 = 40 lakhs. The GOI grant would be maximum up to Rs. 12 lakhs (30% of Rs. 40 lakhs).
Training and Counseling
Training organizations viz. Micro, Small and Medium Enterprises (MSMEs), Entrepreneurship Development Institutes (EDIs), NISIET and the NGOs conducting training programmes for empowerment of women beneficiaries identified under the scheme would be provided a grant upto maximum limit of Rs. 1.00 lakh per programme provided such institutions also bring their share to the extent of minimum 25% (10% in case of NER) of the Government grant. The batch size for such a training activity will be at least 20 participants. Duration of the training programme will be minimum one month. For example if a mention institution or eligible NGO wants to conduct a pre or post project training programme for a group of women then the maximum GOI grant can be Rs.1.0 lakh provided the NGO also raises 25% of the requested grant i.e. the total expenditure of the training expenditure can be up to Rs. 1.25 lakhs for availing full assistance of GOI grant.
Eliciting Information on Related Needs
Institutions such as Entrepreneurship Development Institutes (EDIs), NIMSME, NIESBUD, IIE, MSME-DIs EDIs sponsored by State Govt. and any other suitable institution of repute will be provided need based Government grant primarily for undertaking activities aiming at empowerment of women such as field surveys, research studies, evaluation studies, designing of training modules, etc. etc. covered under the scheme. The grant shall be limited up to Rs. 5 lakhs per project.
How to apply
Interested institutions will apply for such assistance directly to the MSME-DIs concerned and copy to the Office of DC (MSME) giving all the relevant details in the prescribed format.
The Criteria for Registration of NGOs.
- Be a legal entity with a minimum registration of three years.
- Having experience in thrift and saving programmes with SHGs / individuals.
- Be engaged in entrepreneurship and income generation activities for women.
- Have basic infrastructure, qualified support staff and services to undertake micro- enterprise development for women.
- Prepare project proposals on behalf of women entrepreneurs / women Self Help Groups for income activity and take loan from financial institutions for onward disbursement to them.
Grant Assistance for Capacity Building of NGOs
- Training expenses of operating staff on reducing scale.
- Part of the expenses on operating a management and monitoring system viz. Computer Hardware and Software for MIS and vehicles.
- Charges for legal documentation viz. for payment of stamp duty for loans agreement, hiring of legal experts, valuation of assets, examination of title deeds etc.
- Auditor’s fee for auditing credit programme records.
- For establishment of new SHGs
- Common training / consultancy / networking inputs for the members (borrowers) relating to marketing, designing, packaging, quality control, technologies etc.
Grant Assistance to be used by NGOs for ultimate borrowers
- Training in credit usage, credit management and basic accounting practices.
- Skill Development training and professional consultancy inputs viz. Marketing, designing, packing, quality control, technology transfer, financial training etc.
- Equity/margin money contribution for acquisition/establishment of infrastructure (including machine & equipment) in group, entrepreneurship projects.
- Payment of insurance premium on productive assets acquired by beneficiaries.
- Expenses trips to successful micro credit programmes.
- Legal documentation charges for loan documentation, if any.
- Legal, consultancy and training expenses for building institutions of the borrowers viz.SHG federation or Credit Cooperative etc.
- Participation in exhibition and other marketing events
To access the application format, click here.
Source : Development Commissioner (MSME), Ministry of MSME.